NARRATING TOMORROW WITH TODAY’S TECHNOLOGY
Welcome to The Stream, a newsletter curating cultural, lifestyle and industry trends from across the globe, with a particular focus on Japan / APAC.
HOW DIGITALIZATION IS KEEPING THE CHINESE ECONOMY AFLOAT
On December 31st of last year, China notified the World Health Organization (WHO) of unusual, recurrent pneumonia in Wuhan, a port city of 11 million people in the central Hubei province – four months later and the corona virus has significantly halted economies around the world, China’s included.
Lockdowns loomed over the Chinese market, triggering panic. Buyers soon emptied supermarket shelves of all essentials. Yet, thanks to the digitally enabled delivery systems of Alibaba group and JD.com, sellers were quick to restock on supplies.
In 2019, China’s e-commerce made up 36% of all sales, with 71% of Chinese consumers transacting online at some point during the year. Chinese consumers have long been moving away from in-person shopping to digital retail. After the pandemic, digital delivery in China will have even more favorable numbers.
When the whole affair is over, governments and businesses in America and Europe will likely carry on looking to China’s notable levels of technological readiness as something to behold and, quite possibly, emulate.
SHORT ON LABOR, HIGH ON TECH
While the Asian-Pacific labor shortage persists and aging populations continue to plague economies, firms and governments are pouncing at every opportunity to fill the gaps. In response to the pressures, many are calling for a “robot revolution” to boost productivity.
Japanese companies are turning to robotics to compensate for a lack of manpower and China is similarly spending billions on an army of robot workers. Restaurants, shopping malls, and retail stores are quickly introducing robot staff capable of performing simple tasks and guiding customers through their daily shopping needs.
One can imagine that, during times like these, when a pandemic like COVID-19 is depleting the workforce, risking the lives of the old and halting the lives of the young, our reliance on robotic technology will only grow, if not evolving to become a permanent fixture in substantial parts of the post-corona economy.
APAC’S ADOPTION OF AR AND VR TECHNOLOGY
Berkshire Hathaway’s Business Wire has picked up on APAC’s increasing adoption of VR and AR technology. When AR and VR kits first made their debuts in the market, they were often dismissed as only marginally impressive “consumer technologies.” But, as the “wow-inducing” technology’s use cases became more apparent, the narrative surrounding VR and AR has started to change.
The augmented and virtual reality markets are reportedly expected to grow at a 38.4% CAGR (compound annual growth) over the next seven years with an addressable market value of $172.8 billion - and APAC market (of which China makes up 83 percent) is on the forefront of adoption.
These reports now look overshot, given the corona pandemic, as global demand for nonessential goods is going to dwindle for months to come. But, the opportunities remain immense for all atomized technologies. Consumers have quickly learned the fickleness of in-person life and might just be tempted to gear up for a future pandemic, if not for a wholly new lifestyle that is cautiously socially distant.
FAST-TRACKING DIGITAL TRANSFORMATION
It’s no subtle change, the corona virus is reshaping the very way we live and tech firms are taking note. Before the pandemic, only a third of the American workforce worked from home, but today working from home has become the new norm. The larger tech firms were the first to go remote - Twitter, Facebook, Amazon and Google all went digital.
Now, as governments are gearing up for more restrictions, as shops close, schools shut, and people seclude, smaller firms are going virtual and following suit, opening up a great opportunity for online platforms and conferencing tools.
For the past month, Google has been giving away Hangouts’ premium features for free, Microsoft is offering a six-week trial for schools, hospitals and businesses to help weather the crisis, and Zoom — the biggest victor of all — has lifted the 40-minute limit from its free Basic plan for people to use.
The post-corona world is sure to be digital and the most forward-thinking firms are sure to be ready.
Photo by Shahadat Rahman on Unsplash